ISO FORMAT NO.F-CMC-9.

04

Date : ………..

MINUTES OF MEETING HELD IN TECC OFFICE ON ……………… BETWEEN M/S.

…………………………………………… AND M/S TECC AT PUNE.

THERMAX ENGG CONSTRN CO LTD

(CONTRACTOR) (TECC)

JOB : Labour Charges towards Unloading, Stacking, Erection & Assistance during
commissioning of ………

1] ENQUIRY & OFFER REFERENCES:

1.1 Enquiry on e-mail dt. 21-07-04.

1.2 Contractor Offer on e-mail dt. 09-08-04
1.3 Telephonic Discussions our Mr AD Loharikar had with
Mr Probal Mukherjee on 25th Aug 2004.

2] SCOPE OF WORK :

Contractor’s work shall be total, starting from providing skilled/semi-skilled labours

for site mobilisation with tools, tackles, consumables, machinery, crane, etc,
receiving & unloading of Mech, insulation, refractory, painting and E&I materials,
construction of stores for storing contractor's tools & tackles, checking of the
materials at site, preparation of MRR, stacking, storing as directed, shifting from
store/yard to erection site with hydra, tractor & trailors - as the case may be, pre-
assembly, assembly, erecting of boiler materials, auxiliaries & equipments,
alignment & welding (MS, SS, CS etc), radiography as per IBR, stress relieving,
welding of SS anchor / studs, all IBR formalities upto final boiler registration
certificate in Form VI including steam test, barricading & providing assistance in
commissioning, removal of scrap & cleaning of site area, trials & reliability runs until
boiler duly commissioned is taken over by Customer.

Any dismantling of existing material to facilitate modification and erection is

included in basic scope. Since the job is of retrofit nature, modification are
expected on fabricated & dismantled components. Such works are included in the
basic scope.

The quantities & equipments mentioned in the bill of quantities are indicative & may
include other equipments incidental for completion of erection, as per drawings &
BOQs given during course of erection; and therefore Contractor will ensure that all
the work which may not be specifically mentioned in the
specification/drawing/scope of work, but which are usual or necessary for proper
performance of the equipment, are to be done by Contractor without any extra cost
to us and erection & commissioning of all equipments will be contractors
responsibility.

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Pocket & Final grouting will be carried out by Contractor (if it is in the scope of
TECC). Grouting cement shall be supplied by TECC/Thermax, free of cost.

3] PRICE:

The Lumpsum Contract Price finally accepted by the Contractor for the above work
is Rs……………. (Rupees ………………… Only). The billing schedule to be
mutually agreed to. The break up of price shall be prorata as per BOM attached
with our enquiry.

The price shall remain firm and final till completion of the job and/or till validity
period, whichever occurs later. No extra would be payable for modifications /
rectifications or any other reason. In the event of design change only, if such a
change arises and it involves any major modification / rework to be done at site by
the Contractor, the Contractor shall carry out the work forthwith on receipt of
instructions from TECC, and such modification / rework on account of design
change only shall be paid for extra @ Rs.35/- per manhour with consumables.
However, contractor shall provide ……….. free manhours for minor modification
work.

Contractor shall provide ………….. free composite man hours for commissioning
assistance for the boiler. For commissioning assistance beyond 1000 manhours,
TECC shall pay @ Rs.20/- per man hour. Proper logging of man hours to be
maintained at site, which shall be certified by TECC Site Engr. Discussions of
extra claims, if any, shall be done at HO and claim passed accordingly.

4 TAXES & DUTIES :

This being a labour contract, taxes & duties are not applicable at present. Service
Tax if applicable shall be paid extra. Contractor Charging Service Tax is required to
inform TECC / mention on their bill –
i) Category of their service (as per their registration);
ii) Registration No.;
iii) ECC / STC No.;
iv) Amount of Service Tax should be shown separately in the bill; should submit
their bills in duplicate;
v) Payment of service tax shall be released for only such bills that have full
information.
vi) For any clarification in this respect, pls contact our Finance Dept (Mr
Sandeep Mandke - 020-412-6435).

5. QUANTITY VARIATION :

Quantity variation of ± 10% shall be applicable for the total tonnage being erected by
the Contractor. This will be item-wise on unit rate basis, as detailed out in the
quotation. This clause is not applicable for insulation & painting.

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6. DRAWINGS:

Following drawings are given to contractor and studied by him. Other erection
drawings shall be issued to him at site.

SR. DESCRIPTION DRG NO. & REV.

7. TIME SCHEDULE:

SITE MOBILISATION for UNLOADING

ERECTION TO START
MECHANICAL COMPLETION
COMMISSIONING ASSISTANCE
CONTRACT VALIDITY

Timely completion of the work is the essence of this contract. The work has to be
completed by the contractor as per dates specified above.

8. LIQUIDATED DAMAGES / PENALTY :

In the event of delay in completion of the entire work as per agreed schedule, for
reasons attributable to the Contractor, the contractor shall be liable to pay to TECC
a penalty at the rate of 0.5% per week of delay, subject to a maximum of 5% of the
total contract price. Such penalty, if becomes payable by the contractor shall be
deducted by TECC out of the bills of the payment due to the contractor under this
contract.

9. TERMS OF PAYMENT : (To be decided)

The terms of payment of the contract price shall be as follows :-

a. …..% advance against Bank guarantee valid till contract period.

b. …% of contract price prorata on monthly basis, in accordance with approved price

break up & work completion certificates duly certified by TECC Engineer / Customer,
on submission of original invoices. This includes 10% contract value after site
mobilisation. Contractor shall submit workmen compensation insurance policy copy
& indemnity bond alongwith certified original invoice for claiming mobilisation
payment.

c. 10% Retention shall be released, after 6 months from the date of commissioning of
boilers or against submission of BG valid for 6 months from the date of
commissioning of boilers. This payment shall be released only after completion of
reconciliation of all the free issue material, if any & settlement of the same.

d. Contractor shall raise invoice before 15th of every month. Payment shall be made
within 15 working days upon receipt of the original invoices & Work Completion

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Certificate (WCC) approved by TECC Site In-charge, in TECC Pune Office. No

payment shall be released against faxed invoice copies.

e. All payments under this contract shall be subject to income tax deduction (TDS) as
may be applicable under the prevailing statute at the time of payment or its being
due to the contractor.

f. DD Charges, if any, shall be borne by the Contractor.

g. Copies of wage sheets and PF / ESI Paid challans of previous month shall be
submitted by Contractor every following month alongwith invoices. TECC will not
release the payments, if contractor fail to submit these documents alongwith
invoices.

10. SITE ORGANIZATION & RESOURCES:

a) Contractor will deploy a well-experienced Senior Site In-Charge with sufficient

authority to take on the spot decisions; so also an experienced Supervisor to
supervise the job being executed. (Bio-data of the Site In-Charge and Supervisor
shall be submitted to TECC for approval). In case experienced supervisor is not
available at site and if the job suffers for want of supervisor, then TECC shall
engage a supervisor and debit the cost to contractor.

b) Contractor will also provide skilled workers of required grades including mill right
fitter, tube expanding fitters, IBR Welders etc.

c) Contractor shall deploy dedicated Storekeepers for maintaining all ISO records
about related boiler materials. Any shortages/damages to be intimated
immediately on receipt of materials, for lodging claim with Insurance Company &
replenishing the stock.

d) Manpower Deployment Chart shall be submitted by Contractor within 7 days

from the date of MOM. Without receipt of this chart, TECC will not be able to
release the work order.

e) If the contractor fails to deploy experienced manpower as mentioned above,

then TECC will arrange for the manpower from other agencies & all the costs
including overheads will be debited to the contractor.

11. DOCUMENTATION:

Contractor will carry out all documentation required by TECC / Thermax as per their
standard formats (ISO). This includes documentation related to material, site
reports, quality assurance etc. (Required formats will be given by TECC).

12. TOOLS / TACKLES, CRANES & CONSUMABLES:

a. No tools, tackles, hydra, heavy cranes & consumables will be provided by TECC.
Contractor agreed to arrange for all required tools & tackles, hydra, heavy crane,
tractor trailor, machinery, necessary consumables etc required for the smooth
execution of the Project. Minimum tools required for commissioning shall be kept at

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site after mechanical erection, which will be released after boiler is taken over by
customer.

b. List of tools & tackles as well as spares of tools / equipment to be deployed at site
shall be submitted by Contractor within 7 days from the date of MOM. Without
receipt of this chart, TECC will not be able to release the work order.

13. IMPORTANT POINTS TO BE NOTED:

a) Contractor shall submit a copy of Certificate showing their PAN Number

immediately after accepting the LOI/Order.

b) Contractor shall submit copy of IBR Welders certificates, Certificate for approved
NDT inspecting authority, etc immediately after acceptance of the LOI/Order.

c) Contractor shall deploy X-Ray party at site initially for 5 joints of each HP
Welder, for testing the quality of weld joints. The alloy steel & carbon steel
welding, radiography & SR shall be carried out as per the recommendations of
Consultant / Customer / TECC. The required QA plans shall be submitted to
contractor at site.

d) Contractor will not subcontract any work to any agency without prior permission
by TECC well in advance.

e) Planning of all consumables will be done by contractor well in advance & will be
shown to TECC site Engineer. TECC handed over approved list of welding
consumables. If contractor fails to do so, all costs of the delays will be to the
contractor's account. If contractor does not provide consumables in time, TECC
will arrange to procure & debit the cost to the contractor, inclusive of their
overheads.

f) One senior person (owner or partner) should always be available at site. In case
he has to leave site, he should inform his next visit program & strictly adhere to
it. However, he should be available during all the important occasions &
milestones like leak test, welder approval, statutory authorities visits, TECC
senior persons visits etc. (TECC site engineer & TECC HO Project engineer will
inform the requirements to the contractor)

g) Contractor shall use D.A cylinders / LPG cylinders as per customer’s

requirement, during erection work at site.

h) Contractor shall comply with all labour & industrial laws including contract labour
(Regulations & Abolition Act 1970), Provident Fund, Family Pension Scheme,
Minimum wages act, Workmen Compensation Act, Deposit linked insurance,
Insurance, Medical & such other acts and statutes as may be applicable to him
in respect of his employees employed by him in connection with the work of the
company. The contractor shall get himself registered wherever statutorily
required & comply with such requirements as specified in relevant
acts/rules/scheme. In no way TECC shall be responsible for Contractor’s
employees. The Contractor shall indemnify TECC to this aspect, by submitting
an indemnity bond, as per format attached.

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Workmen will be required to work on 10/12 hrs a day basis & they should
observe proper discipline & ensure compliances with MUL’s rules & regulations.

i) Contractor shall submit copies of monthly wage sheets of their workers, copies
of PF & ESI Challans for payments made, etc every month to TECC. If they fail
to submit the same, TECC shall with-hold their payments. In case, as per
Customer’s requirement, if TECC has to take Contractors Labour Licence, then
all expenses including deposit incurred by TECC on this account, will be debited
to contractor.

j) Contractor shall arrange for accommodation, conveyance, boarding, medical,

insurance & all statutory requirements for their workmen & staff employed in this
project.

k) Open space for stores & office for the contractor shall be provided free of cost.
Contractor shall construct the stores & office at their cost & dismantle and clear
the area after completing the project.

l) Electric power & water shall be provided at one point by TECC. Contractor shall
make their own arrangement for distribution thereafter.

m) Safety gadgets to the contract labours are to be provided by the contractors.

Contractor will obtain a safety work permit from operation shift incharge, before
start of job everyday. The safety work permit shall be renewed at start of every
shift. All contractor staff shall follow safety guidelines as prevailing at customer's
work site. All staff shall wear safety helmets, safety belts, safety shoes, welding
goggles, hand gloves & other appliances, as deemed necessary at customer’s
premises. Safety being an important aspect at site; contractor shall take extra
care to ensure that he meets all the safety requirements as per customer’s
requirement. In case of non-compliance of safety norms, contractor shall be
liable to be penalised.

n) Boiler Materials to be issued by Customer/TECC on free issue basis will be

collected by contractor from our stores/yard.

o) Following documents are handed over to the contractor, which shall form part of
the contract:-

 Annexure 1 : Responsibility chart

 Annexure 2 : General Conditions of Contract & Addendum
 Annexure 3 : Standard Terms & Conditions of Contract.
 Annexure 4 : General Safety Rules & Regulations.
 Annexure 5 : Approved Welding Consumables list.
 Indemnity Bond Format. (will be sent on e-mail)
 Retention BG Format (will be sent on e-mail)

For For THERMAX ENGINEERING

CONSTRUCTION CO LTD

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